The Committee on Government Organization moves to amend the
bill on page 2, line 4, after the enacting section, by striking out
the remainder of the bill in its entirety and inserting in lieu
thereof the following:
"ARTICLE 9. SUPERVISION OF LOCAL GOVERNMENT OFFICES.§6-9-7. Examinations and investigations into affairs of local
public offices; penalties.
(a) (1) The Chief Inspector has the power by himself or
herself, or by any person appointed, designated or approved by the
chief inspector to perform the service, to examine into all
financial affairs ofor his or her designee may perform an
examination of every local governmental office or political
subdivision and all boards, commissions, authorities, agencies or
other offices created under authority thereof. (2) An examination shall be made annually, if required, to
comply with the Single Audit Act and when otherwise required by law
or contract. (3) When that act does not apply, unless otherwise required by
law or by contract, the examination shall be made at least once a
year, if practicable. (4)Furthermore, The Chief Inspector shall furnish annually to the Legislature a list of each local government office or political
subdivision and all boards, commissions, authorities, agencies or
other offices created under their authority thereof and the year of
its most recent completed audit.(5) The Chief Inspector may investigate the financial affairs
of every local government office or political subdivision and all
boards, commissions, authorities, agencies or other offices created
under authority thereof.
(b) When required for compliance with regulations for federal
funds received or expended by County Boards of Education, the Chief
Inspector or his or her designee including any certified public
accountant approved by the chief inspector shall conduct and issue
an audit report within the time specified in controlling federal
regulations. Examinations of other local governments shall be
conducted and audit or review reports in accordance with uniform
procedures of the chief inspector.
(c) (1) A County Board of Education may elect, by May 1 of the
fiscal year to be audited, to have its annual examination performed
by a Certified Public Accountant approved by the Chief Inspector to
perform the examinations. (2) When this election is made, a copy of the order of the
county board making the election shall be filed with the Chief
Inspector and the State Board of School Finance. (3) The County Board of Education is allowed tomay contract with any Certified Public Accountant on the Chief Inspector's then
current list of approved Certified Public Accountants, unless:(A) The State Board of School Finance or the Prosecuting
Attorney of the county in which the board is located timely submits
to the Chief Inspector a written request for the examination to be
performed by the Chief Inspector or a person appointed by the chief
inspector,his or her designee; or (B) The Chief Inspector determines that a special or unusual
situation exists. (4) The county board shall follow the audit bid procurement
procedures established by the chief inspector in obtaining the
audit.
(d) The Chief Inspector shall, at least annually, prepare
approve and publish a list of Certified Public Accountants approved
by the chief inspector towho may perform examinations of local
governments, Names shall be added to or deleted from that listand
add or delete names in accordance with his or her uniform
procedures. of the chief inspector. When each list or updated list
is issued, the Chief Inspector shall promptly filepost a copy of
the list in the State Register and send a copy to the State Board
of Education, the State Board of School Finance and to local
governments who request a copyon the State Auditor's website.
(e) A County Board of Education, when procuring the services
of a Certified Public Accountant on the Chief Inspector's list, shall follow the procurement standards prescribed by the grants
management common rule, OMB Circular A-102 "Grants and Cooperative
Agreements with State and Local Governments" in effect for the
fiscal year being examined, or in any replacement circular or
regulation of the Office of Management and Budget, and in addition
shall follow thoseany other standards as determinedestablished by
the office of Chief Inspector.
(f) The approved independent Certified Public Accountant
making examinations under this section shall comply with
requirements of this section applicable to examinations performed
by the Chief Inspector, including applicable requirements of the
federal government and uniform procedures of the Chief Inspector
applicable to examinations of county Boards of Education.
(1) Upon completion of the certified public accountant's
examination and audit or review report, the Certified Public
Accountant shall promptly send one copytwo copies of the certified
report to the County Board of Education, who shall file one copy
with the Federal Audit Clearing House, The certified public
accountant shall send one copy of the certified report to the State
Board of School Finance, and one copy to the Chief Inspector.
(2) (A) If any examination discloses misfeasance, malfeasance
or nonfeasance in office on the part of any public officer or
employee, the Certified Public Accountant shall submit his or her
recommendation to the Chief Inspector regarding the legal action the approved certified public accountanthe or she considers
appropriate, including, but not limited to, whether criminal
prosecution or civil action to effect restitution is appropriate.
and three additional copies of the certified audit report.(B) After review of the recommendations and the audit report,
the Chief Inspector shall proceed as provided in subsection (n)(m)
of this section. (C) For purposes of this section and section thirteen, article
nine-b, chapter eighteen of this code, a certified audit report of
an approved Certified Public Accountant shall be treated in the
same manner as a report of the Chief Inspector.
(g) On every examination, inquiry shall be made as to the
financial conditions and resources of the agency having
jurisdiction over the appropriations and levies disbursed by the
office and whether the requirements of the Constitution and
statutory laws of the state and the ordinances and orders of the
agency have been properly complied with and also inquire into the
methods and accuracy of the accounts and such other matters of
audit and accounting as the Chief Inspector may prescribe.the
Chief Inspector, or his or her designee, shall adhere to generally
accepted auditing standards issued by the American Institute of
Certified Public Accountants; Government Auditing Standards issued
by the Comptroller General of the United States and, if applicable,
federal guidelines and circulars governing federal financial assistance.
(h) If a local government office is not subject to a single
audit requirement under federal regulations, or if it is not
otherwise required by law or contract to undergo an annual audit,
and its expenditures from all sources are less than $300,000 during
the fiscal year, the Chief Inspector may choose to perform either
a review or audit on the local government office and may in his or
her discretion determine the frequency of suchthe review or audit.
(i) The Chief Inspector or any authorized assistant may issue
subpoenas and compulsory process, direct the service thereof by any
sheriff, compel the attendance of witnesses and the production of
books and papers at any designated time and place, selected in
their respective countycounties, and administer oaths.
(j) If any person refuses to appear before the Chief Inspector
or his or her authorized assistant when required to do so, refuses
to testify on any matter or refuses to produce any books or papers
in his or her possession or under his or her control, he or she is
guilty of a misdemeanor and, upon conviction, thereof shall be
fined not more than $100 and imprisonedconfined in jail not more
than six months.
(k) A person convicted of willful false swearing in an
examination is guilty of a misdemeanor and, upon conviction,
thereof shall be fined not more than $100 and imprisonedconfined
in jail not more than six months.
(l) Except as otherwise provided in this section, a copy of
the certified report of each examination shall be filed in the
office of the commissioner, chief inspector with the governing body
of the local government and with other offices as prescribed in
uniform procedures of the Chief Inspector.
(m) (1) If any examination or investigation discloses
misfeasance, malfeasance or nonfeasance in office on the part of
any public officer or employee, a certified copy of the report
shall be published electronically by the Chief Inspector with
notice of the publishing sent in writing to the proper legal
authority of the agency, the Prosecuting Attorney of the county
wherein the agency is located and with the Attorney General for
such legal action as is proper. (2) At the time the certified audit report is published, the
Chief Inspector shall notify the proper legal authority of the
agency, the Prosecuting Attorney and the Attorney General in
writing of his or her recommendation as to the legal action that
the chief inspector considers proper, whether criminal prosecution
or civil action to effect restitution, or both.
(n) If the proper legal authority or Prosecuting Attorney,
within nine months of receipt of the certified audit or
investigative report and recommendations, refuses, neglects or
fails to take efficient legal action by a civil suit to effect
restitution or by prosecuting criminal proceedings to a final conclusion, in accordance with the recommendations, the Chief
Inspector may institute or participate in the necessary proceedings
or participate therein and prosecute the proceedings in any court
of the state to a final conclusion.
(o) (1) A local government that is not a County Board of
Education may elect, by May 1 of the fiscal year to be audited, to
have its annual examination performed by a Certified Public
Accountant approved by the chief inspector to perform the
examinations. (2) When this election is made, a copy of the order of the
governing body making the election shall be filed with the chief
inspector. (3) An electing local government is allowed tomay contract
with any Certified Public Accountant on the chief inspector's then
current list of approved Certified Public Accountants, unless:(A) The Prosecuting Attorney of the county in which the local
government is located timely submits to the chief inspector a
written request for the examination to be performed by the Chief
Inspector or a person appointed by the chief inspectorhis or her
designee; or(B) The Chief Inspector determines that a special or unusual
situation exists: Provided, That the audit of a local government
may be performed by the Chief Inspector at his or her discretion. (4) The local government shall follow the audit bid procurement procedures established by the Chief Inspector in
obtaining the audit: Provided, however, That the Chief Inspector
may elect to conduct the audit of a local unit of government with
one or more members of his or her audit staff where, in the opinion
of the Chief Inspector, a special or unusual situation exists.§6-9-9a. Public inspection of reports of examinations.
All reports of examinations and audits of public offices made
in accordance with the provisions of section seven of this article,
and the copies thereof, when filed in the office of the chief
inspector of public offices or in the office of the State Tax
Commissioner, shall be public documents and shall be available for
public inspection: Provided, That if an examination or
investigative report discloses misfeasance, nonfeasance or
malfeasance, the report shall remain confidential until such time
that the proper legal authority, as described in subsection (m) of
section seven of this article, has completed its investigation
and/or adjudication of the matter.§6-9-9b. Confidentiality of audit working papers of chief _
inspector._(a) The audit working papers created by the Chief Inspector
division of the State Auditor's office during examinations or
investigations are confidential and are not public records as that
term is defined in section two, article one, chapter twenty-nine-b
of this code.
_(b) For the purposes of this section, "audit working papers"
include, but are not limited to, the books and records of the
entity being audited, intra-agency and inter-agency communications,
draft reports and/or summaries, schedules, notes, memoranda, and
all other records relating to an examination or investigation."